CIP-0118: Delegated Staking Enhancements
Overview
CIP-0118 proposes enhancements to Canton's delegated staking mechanism, introducing liquid staking derivatives, auto-compounding options, and institutional delegation features. The proposal defines a standard liquid staking token (stCC) that represents staked Canton Coin positions and can be used across DeFi protocols. CIP-0118 also introduces validator performance scoring based on uptime, block production efficiency, and governance participation. Delegators can configure automatic redelegation policies that shift stake toward higher-performing validators. The proposal includes enhanced slashing insurance mechanisms and institutional delegation contracts with customizable fee sharing arrangements between validators and large institutional delegators.
Impact on Canton Network
Enhanced delegation features would make Canton staking more accessible and efficient, enabling liquid staking derivatives for DeFi composability while improving validator performance through market-driven delegation.
About Canton Network Governance
Canton Improvement Proposals (CIPs) are the formal mechanism for suggesting changes to the Canton Network protocol, standards, and ecosystem processes. Each CIP goes through a lifecycle from Draft to Proposed to Active or Implemented, with community review and validator consensus required for adoption.
The CIP process ensures that protocol changes are carefully considered, widely reviewed, and transparently documented. This governance framework is essential for maintaining Canton's position as the leading institutional blockchain, where predictability and stability are paramount.